Created in 1965, Medicaid is a federal and state public health insurance program providing physical, behavioral, and long-term services and support for people with low incomes. As the largest US health insurer, it covers millions of children, parents, pregnant women, seniors, and people with disabilities. Medicaid is an important source of coverage for people of color, who are more likely than white Americans to live in poverty due to systemic racism.
While Medicaid has improved health care access for the uninsured, nonwhite Medicaid enrollees tend to experience worse access, quality of care, and outcomes than white Medicaid enrollees. These inequities stem partly from historical racial politics that continue to shape the program’s state-driven structure: because states can set their own eligibility rules, benefit packages, provider payments, and other aspects of the program, some state Medicaid policies disproportionately exclude people from racial and ethnic minority groups. States that resisted Medicaid creation tend to have very restrictive eligibility policies; many of these states also have not adopted the Affordable Care Act’s (ACA) Medicaid expansion, perpetuating disparities.
This guide equips advocates and other changemakers with key information about Medicaid, including an overview of the system’s inequities, and highlights the policy and accountability levers that can advance equity. This guide is part of a larger project on inequities and policy levers in the US health care system. For the complete guide, visit urbn.is/4054rNQ.
Urban Institute, December 2023